Joschka Fischer was German Foreign Minister and Vice Chancellor from 1998-2005, a term marked by Germany's strong support for NATO's intervention in Kosovo in 1999, followed by its opposition to the war in Iraq. Fischer entered electoral politics after participating in the anti-establishment protests of the 1960s and 1970s, and played a key role in founding Germany's Green Party, which he led for almost two decades.

"It has become common knowledge in Europe that the ongoing crisis will either destroy the EU or bring about a political union"

It looks like Fischer has drunk the poisoned Kool-aid of the eurocrats.

In reality the eurocrats have gone a step too far with their implementation of the euro and need to take a step back. But having pushed through so much in an undemocratic way they are now afraid things might be turned back.

Far from being a danger this could finally open the door to real democratic European cooperation.

The problem in Germany is that the politics is somewhat trapped by the narrative that has been peddled from the start. See this for an argument as to where electorates have been misled on some key issues.

I strongly dispute that you can have a corrupt, bankrupted tax haven negotiating like a mad berber and still dare to blame the troika for the moderate conditions. All that seems politically convenient but its also means to be completely without backbone.

.
A banking/fiscal/political union would be like getting married to your neighbor because you want to help them. It is a step too far.

A better solution is a one time noniflationary monetization. It would work ( as briefly as possible) like this:

1) Declare a Euro zone "Central Bank Dividend" ( CBD ). A CBD is a dividend from the Central Bank allocated to each citizen, but, in this
case, held by the central bank for debt repayment. Yes, it is printed
money.

2) Amount: Greek debt is almost 200% of GDP. Per capita GDP is about $27000 so per capita debt is about $50,000. The useful CBD would be $50,000.

3) Implementation: The ECB would open an account for each euro zone country and deposit $50,000 per citizen. To be paid out only on outstanding debt when requested by the country and only when inflation was below a specific threshold, perhaps 2.6%.

4) Fairness : Each country in the euro zone would be treated equally because the CBD would be allocated on a per citizen basis for each citizen in the euro zone.

5) Price: The CBD would only be in force as long as the receiving country was taking measures to ensure future budgets were not excessive.

So it is possible to make everyone happy by paying debtors in full, avoiding inflation and stopping the Depressions. Perhaps when enough countries threaten Euro Zone secession, they will realize this.

I respond what will work and what is starting to work in the Eurozone is the diktat money system. The seigniroage, that is the moneyness, of the Milton Friedman Free To Choose Banker Regime, has been one of investment choice, supportied by the fiat money system. But now, with Libealism pivoting into Authoritarianism on May 1, 2013, the world is beginning to be based upon the seigniorage of the Angela Merkel and Olli Rehn Beast Regime, which is one of diktat, supported by the diktat money system.

Diktat money was born out of the Cyprus Bank Deposit Bailin and issued in Authoritarianism.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional sovereign leaders such as Olli Rehn, and sovereign regional sovereign bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.

Under Authoritarianism, ever increasing moneyness will come from the mandates of regional leaders, such as the EU Finance Ministers and regional bodies such as the ECB, underwritten by Authoritarianism schemes such as regional framework agreements, which will waive national sovereignty and pool sovereignty regionally. The Nordic Latin Divide, that is the Eurozone North South Divide, will be bridged by such agreements, establishing a One Euro Government. While Germans, cannot be Greeks, they will be one, unified as residents of a region of “true European Government” as proposed by Angela Merkel, and reported by Spiegel and others.

...that worked for Germany at the beginning of the millennium = but planted the seeds of instability of today.

That original German strategy was already flowed, unfair and predatory, because it aimed at achieving prosperity at home at the expense of their neighbors. They used wrong, unsustainable economic model, so bitterly similar to quest of Lebensraum.

Which is so unfortunate and dangerous as well, because we can already see the tensions and hatred it is creating.

But this does not have to be that way. There are economic models which cancel the need for external trade surpluses as a means of maintaining economic system.

We can build Europe on mutual cooperation, technology sharing, passing of productivity gains towards people in the form of additional free time instead of unemployment. But politicians needs to be less selfish and more educated, especially in the way economy really works.

www.genomofcapitalism.com explains ideas we could build upon transforming the Europe back to its original purpose.

But one important question remains: Are we speaking about Europe ? ( prosperity and peace for all Europeans ?) If so,I don´t see a place for Chinese competition in it, with their wage levels. If Europe is not a club for Europeans, than it has lost its meaning for good and will disintegrate. Because we cannot compete with China and forcing the Southern states to become competitive again (to lower their wages to the level of Chinese) is not an acceptable solution.

Political leaders need to pull together an integrated set of policy proposals that lead to convergence in the intermediate term that would sustain growth. The credibility of such a program is necessary to build the political support to embark on a program of short-term stimulus to re-start growth.

But short-term money is not going to come unless there is a credible belief in the intermediate term plan.

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